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and was to receive distributions from the $25 million Trust Fund
over the course of the remaining term of the Brussels Leaseback,
Pierson also was the trustee of the Trust Fund, and, as such,
from the December 12, 1991, date on which the funds were
transferred into the Trust Fund, Pierson had possession of the
$25 million.
Under the terms of the Trust Fund, in 1995, 1996, and 1997
Atrium was required to make additional payments into the Trust
Fund of approximately $1.6 million relating to the remaining 10
percent of the total payments to be paid during the remaining 6-
year term of the Brussels Leaseback.
Residual Value Certificate, Transfer of Interest in the
Trust Fund, and Cancellation of Petitioner’s Lease Interest
From March of 1993 through September of 1993, ABN, Atrium,
Wolf on behalf of QTN and petitioner, and other parties
negotiated a modification or a restructuring to some of the terms
relating to the payments due under the Brussels Leaseback, under
the Atrium Sublease, and under the Trust Fund. The additional
$1.6 million that Atrium, in later years, would have been
required to pay under the Trust Fund was reduced to $400,000.
ABN effectively obligated itself to continue leasing the
equipment during the 4-year renewal period of the Atrium
Sublease, and the scheduled lease payments to be due from ABN
during the 4-year period were restructured.
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Last modified: May 25, 2011